According to a press release dated April 18, 2006, the Complaint charges that defendants violated the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Sections 11 and 15 of the Securities Act of 1933 by issuing materially false and misleading financial information. The Complaint alleges that the during the Class Period, the Company reported materially false and misleading revenues for each reporting period in 2005. In particular, the Complaint alleges that the Company violated Generally Accepted Accounting Principles and the Federal Securities Laws, by failing to recognize sales to one of its affiliates, PTI, on a consolidated basis and recognizing sales that were uncollectible, which resulted in the Company overstating its revenues for 2005. The complaint further alleges that on or around April 11, 2006, the Company shocked the market when it announced, among other things, that its financial statements for 2005 should no longer be relied upon because the Company improperly recognized sales to PTI because the Company failed to consolidate PTI's results and accounted for sales that had uncertain collectibility. The Company admitted that it controls PTI as it has the ability to elect two-thirds of PTI's Board. As a result, the Company announced that revenues would be reduced by approximately $3.6 million and $2.5 million, for the fourth quarter of 2005 and fiscal year 2005, respectively. Following these adverse disclosures, the Company's stock price dropped nearly 37.2%. The class action lawsuit has been filed on behalf of all purchasers of Pixelplus American Depositary Shares during the class period, including purchasers in the Company's Initial Public Offering.

If you bought Pixelplus Company, Ltd. securities between December 21, 2005 and April 11, 2006, inclusive, and would like to obtain information about the Pixelplus Company, Ltd. lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.